Bell FX Currency Outlook: The Australian Dollar is weaker this morning as concerns remain Greece will require more financial assistance despite the approval of a second bailout package.

Australia: The AUD is trading at USD 1.0650 this morning, which is a full one US cent below yesterday's levels. Overnight, Eurozone ministers approved the delivery of a second aid package, worth €130 billion ($160 billion), to help Greece stave off a loan default.

The markets remain worried. The economy has been in recession since the end of 2008 and the proposed austerity measures will further weigh on growth. Adding to the proposed reforms, if the Greek government can successfully implement the austerity measures, the country's debt-to-GDP ratio will still only fall to a very high 120% by 2020.

In addition to this, the deal still needs to be ratified by the various national parliaments in Europe so expect complications and headlines.

The AUD's fall was an interesting one, as it occurred despite the EUR holding ground as well as a rally in copper futures. Locally, yesterday's RBA Minutes from the February meeting reinforced the RBA sees scope for a further easing in monetary policy if the economic outlook weakens "materially".

RBA Governor Glenn Stevens said funding costs for banks have not fallen as much as the 50bps cuts in the cash rate. Looking at today, the main focus is the release of preliminary Chinese manufacturing data for February which will be of interest to Australian
markets with China reporting a contraction in manufacturing activity in
January.

Locally, the wage price index for Q4 is released as is the December leading index and January skilled vacancies. The AUD seems
to be struggling again at these levels.

Majors: It was a relatively subdued night for the US Dollar and other major currencies as oil increased after Iran's weekend announcement to stop oil sales to Britain and France and yesterday's agreement on a Greek bailout package provided additional support.

European equity markets were lower and US markets have also lost ground towards the end of the session. Offshore, the advance estimates for February manufacturing PMI's in China and Europe, Bank of England Minutes and US existing home sales
for January are released.

Economic Calendar
22 FEB AUS Westpac Leading Index Dec
AUS Wage Cost Index 4Q
US Existing Home Sales Jan